The Study Of China's Commercial Banks Resolve The Issue Of Bad Assets Through The Method Of Debt-to-equity Swap

In 1999,the policy-oriented debt-to-equity swap reached the aim of getting rid of state-owned banks non-performing assets and extricating state-owned enterprises from difficult position.China's economy has developed rapidly,the banking sector has ushered in the golden period of development as well.However,along with the deterioration of the global economic environment,lack of new economic growth points and other factors led to China's macroeconomic growth continued to drop.The leverage ratio of corporate sector is high and commercial banks' profitability declined significantly,not to mention non-performing assets keep growing.In October 2016,the State Council formally promulgated <Guidance on performing market-oriented debt-to-equity swap> and <Opinions on actively yet prudently reducing the leverage of enterprises>,which means a new round of debt-to-equity swap has officially kicked off.This thesis describes the basic conception and the theoretical foundation of debt-to-equity swap,the background and the problems caused by the first round of debt-to-equity swap wave in China,the comparison of China's two rounds of waves and foreign countries' implementation experience.This thesis also illustrates the case of China National Erzhong Group Co.debt-to-equity swap,and put forward policy proposals from the point of view of domestic commercial banks.